The U.S. Congress created Freddie Mac in 1970 to help increase stability and affordability in the housing market. Their role is to expand the secondary loans market by purchasing mortgages to then sell to mortgage-backed security investors. The secondary mortgage market increases the supply of money available for mortgage lending and the money available for new home purchases. In other words, Freddie Mac is just another way for lenders to be able to provide a vast number of loans to their clients and find the best fit for them.
Freddie Mac has now come out with a unique program, called Refi Possible, to promote homeownership for Americans who make less than the Area Median Income (AMI) — many of whom believe they don’t make enough to get a refinance on their home.
The Refi Possible website states, “The Freddie Mac Refi Possible mortgage offering will enable millions of homeowners the opportunity to reduce their monthly mortgage expenses through refinance, enhance their capability to save more, and build housing stability and generational wealth through housing.” Again, this program is mainly for homeowners who may have thought about refinancing but assumed that since they didn’t make enough monthly income they were unable to take advantage of it. The timing of this program is also especially advantageous while interest rates remain so low.
What homeowners should know about the Refi program:
- Homeowners with incomes at or below 80 percent of the Area Median Income (AMI) are eligible for the program.
- The program works for all types of homes, including manufactured housing.
- There are expanded eligibility guidelines and waivers on appraisal and credit fees.
- They make allowances for loans in COVID forbearance and provide an opportunity to roll in portions of the closing costs.
On top of decreasing monthly mortgage payments, Refi Possible can help homeowners:
- Increase savings for financial hardships by reducing the number of monthly mortgage payments.
- Have a better chance of being successful long-term homeowners.
- Create an opportunity to build generational wealth through housing.
- Take advantage of the flexible terms to meet individual needs of refinancing.
This program has the potential to help many individuals stay in their homes when they would otherwise go into forbearance. Real estate agents who go above and beyond to serve clients who are struggling with homeownership can use Refi Possible as a resource to help them lower their monthly mortgage payments and keep their homes.
If you are a real estate agent and are interested in growing your business during these unprecedented times, schedule an appointment for a free business consultation with a Workman Success Systems expert analyst. When you implement Workman Success Systems’ proven strategies, real estate coaching can be the key to unlocking real growth in your business.